Chapter 13 bankruptcy is a reorganization of debt, much like a consolidation of debt. Under Chapter 13, a debtor agrees to work with the court’s trustee to structure a repayment plan to clear most or all of their debt. The court appointed trustee will prepare a plan for repayment based on the debtor’s income and living expenses. The time allotted for the plan is 3 to 5 years. During this time, payments are made to the trustee who in turn, pays the creditors.
If a debtor does not meet the eligibility requirements under Chapter 7 (e.g. household income exceeds the maximum limits or assets are too high), then Chapter 13 may be a suitable alternative. Chapter 13 offers protection from creditors by restructuring monthly obligations to a more affordable payment and stopping harassing phone calls/collection efforts during the term. It can also be a better choice to stop foreclosure and keep your home. In addition, under Chapter 13, a debtor can keep his/her assets.
Florida Consumer Law Center helps consumers who are overwhelmed by debt every day; making them aware of their options. While aware of our clients concerns and needs, Attorney Charles Cadrecha strives to exceed their expectations.
Additionally, FLCLC offers representation throughout the middle district, a professional team to answer your questions and the availability of emergency conferences.
Contact us now for a consultation.